Exam 1: Environment and Theoretical Structure of Financial Accounting

When there is agreement between a measure or description and the phenomenon it purports to represent, information possesses which characteristic?

The asset/liability approach emphasizes matching to determine what assets and liabilities should be reflected on the balance sheet.

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Full disclosure

The revenue/expense approach emphasizes determining the appropriate amounts of revenue and expense in each reporting period.

The enhancing qualitative characteristic of understandability means that information should be understood by:

One of the elements that many believe distinguishes a profession from other occupations is the acceptance of responsibility by its members for the interests of those it serves, which is often articulated in:

-Compute Amazon's cost of goods sold for the year.

Ford Motor Company purchases services from suppliers on account and sells its products to distributors on short-term credit. As a result, do each of these events affect net income faster than they affect net operating cash flows?

Which of the following has the statutory authority to set accounting standards in the United States?

Which of the following was the first private-sector entity that set accounting standards in the United States?

Which of the following is typically characterized as a principle, rather than an assumption?

Accrual accounting attempts to measure revenues and expenses that occurred during accounting periods so they equal net operating cash flow.

Give an example of a violation of the stable monetary unit assumption. How would it affect the quality of financial statement information?

GAAP is an abbreviation for:

The FASB's due process invites various interested parties to indicate their opinions about whether financial accounting standards should be changed.

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Comprehensive income

Identify or define the following terms: economic entity, going concern.

The revenue/expense approach emphasizes:

Which of the following is not a potential benefit of accrual accounting, compared to cash-basis accounting?

Listed below are ten organizations followed by a list of phrases that describe or characterize the organizations. Match each phrase with the correct organization. -SEC